IMF President: World economy is worse than 2009 crisis. “It is clear that we are in a recession that is as bad or worse as 2009 now. We expect recovery in 2021,” IMF President Kristalina Georgieva said. said.
IMF President Kristalina Georgieva told the press that the economy is clearly in recession this year due to the global coronavirus outbreak.
“We have evaluated growth prospects for 2020 and 2021,” says Georgieva. It is clear that we are now in a bad or worse recession until 2009. We expect recovery in 2021. ” said.
Georgieva made this statement after the IMF meeting with the International Monetary and Finance Committee. In the meeting, the challenges of coronavirus outbreak were discussed.
The IMF President stressed that the expected recovery in 2021 would occur if the virus was taken under control and the liquidity problems were prevented from turning into solvency problems.
Georgieva said that the financial support required for emerging markets is currently estimated at $ 2.5 trillion. He said that most of the developing countries have insufficient internal resources and have a high debt burden. In addition, Georgieva underlined that their own reserves of these countries will not be able to overcome this crisis.
The IMF President’s comments caused a drop in markets and Bitcoin, which has recently been observed to be moving along with stocks. Dow Jones closed Friday with 4.03% and S&P 500 with 3.37%. Bitcoin also fell from $ 6680 to $ 6074, and is traded at $ 6200 in the minutes that the news goes live.
Bitcoin has been following the same path as stocks for a while. This can be understood in times of economic crisis. Renowned technical analyst John Bollinger states that all correlations in a crisis turn to 1. The correlation coefficient ranging from -1 to 1 shows that the closer it is to 1, the more related the price movements between these assets.
Recently, the correlation between the S&P 500 index, which includes the 500 largest companies in the US, and Bitcoin, has reached the highest levels in history. The correlation between the two entities was measured as 0.52.